Does CubeSmart (CUBE) Have A Cheap Price Or Is It Risky?


The stock of CubeSmart (NYSE:CUBE) decreased by -$0.91 on Tuesday to finish at $39.34, down -2.26 percent. The last five days have seen an average of 1,543,260 shares of common stock traded. The average number of shares traded over the last 20 days was 4,365,505, while the average volume over the last 50 days totaled 2,654,242.

CUBE stock dropped -4.98% since last month. On 12/20/22, the company’s shares reached a one-month low of $38.75. The stock touched a high of $57.34 on 01/03/23, after rallying from a low of $36.82 in 52 weeks. The price of CUBE stock has declined by -2.26%. Still, the stock price is down -31.39% from the 52-week high.

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Valuation Metrics

CubeSmart (CUBE) has a trailing price-to-earnings (P/E) ratio of 34.51. Beta for the stock is 0.54. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 9.31, the price-to-book (PB) ratio of 3.10, and the price-to-cash flow ratio of 56.84.

Company paid $0.49 per share in dividends, an increase of 13.95% from $0.43 last year. A $0.06 dividend increase was reported on Wednesday December 7 2022.

Financial Health

As far as profitability goes, gross margin for the trailing twelve months is 70.80% percent. CubeSmart’s operating margin stood at 30.00% for the same period. Based on annual data, it had gross profit of $290.6 million and revenue of $822.56 million.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. CUBE’s return on assets (ROA) during the last 12 months has been 3.90%. There was a 4.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 8.90%.

Earnings Surprise

According to CubeSmart’s quarterly financial report for the quarter that ended September 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $261.41 million, while revenues rose by 18.69% to $248.66 million. It was predicted that CubeSmart’s quarterly earnings would be $0.5, but it ended up being $0.28, beating the consensus by 78.60%. EBITDA was $172.26 million for the quarter. At the end of CubeSmart’s most recent quarter ended September 29, its total debt was $3.09 billion. Equity owned by shareholders amounts to $224.57 million.

Technical Picture

Here’s a quick look at CubeSmart’s (CUBE) price momentum from a technical perspective. As of 03 January, the RSI 9-day stood at 37.29%, suggesting the stock is Neutral, with a 25.90% historical volatility rate.

The stochastic %K and %D were 18.50% and 24.61% respectively, while the average true range (ATR) was 1.23. Based on the 14-day stochastic reading of 9.12%, the RSI (14) reading is 41.31%. On the 9-day MACD Oscillator, the stock is at 0.00, and the 14-day reading is at -0.42.

Analyst Ratings

CubeSmart (NYSE: CUBE) was downgraded by Jefferies to a a Hold rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned CubeSmart (CUBE) an Overweight rating. CUBE is a stock that is recommended for selling by 0 brokerage firms, while 5 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 6 others recommend it as a buy.

What is CUBE’s price target for the next 12 months?

The current consensus forecast for the stock is between $41.00 and $55.00, with a median target price of $47.00. In analyzing these forecasts, the average price target given by analysts for CubeSmart (CUBE) is $47.33.


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